Karkhana acquires Micron EMS to expand electronics manufacturing

Manufacturing startup Karkhana has fully acquired Micron EMS Tech Pvt Ltd, a Bengaluru-based electronics manufacturing company, in a deal whose value was not disclosed.

This move marks a change in Karkhana’s strategy, as it expands from a manufacturing aggregation platform to a full-service electronics manufacturing partner, offering solutions across the entire production process.

After the acquisition, Karkhana will gain a dedicated manufacturing facility of over 40,000 square feet in Bengaluru. The facility includes high-speed SMT lines, through-hole PCB assembly lines, and more than 10 box-build production lines. This will boost Karkhana’s in-house PCB assembly (PCBA) capacity while enabling higher automation and advanced testing.

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The unit will follow a multi-stage quality assurance process, including soldering checks, 3D inspection, automated optical inspection (AOI), X-ray inspection, conformal coating, and product testing. Karkhana will also implement digital systems like ERP and manufacturing execution systems (MES) to improve operational visibility and provide full digital traceability during production.

These upgrades will allow Karkhana to produce a wide range of electronics, from standard assemblies to integrated system-level box builds ready for direct customer use.

Currently, the company works with over 25 OEMs and plans to expand its customer base. Its focus sectors include industrial electronics, automotive systems, telematics, consumer IoT devices, and medical equipment. Karkhana also aims to increase exports to the US and EU as global companies diversify supply chains under the China+1 strategy.

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Sonam Motwani, Founder and CEO, Karkhana, said, “The acquisition of Micron is a strategic step in how we want to build Karkhana for the long term. By combining our strengths, Karkhana can accelerate its transition into a full-stack electronics manufacturing partner. We can now offer OEMs a more comprehensive manufacturing solution for electronics, mechanical,  and system integration with global-standard certifications, tight process control, and end-to-end accountability from component sourcing and PCBA to final assembly, testing, and logistics. As we scale, we will continue to expand our manufacturing capabilities and look to invest in both brownfield and greenfield projects.” 

Kalpana Naagaraj, MD, of Micron EMS said, “Fifteen years of manufacturing excellence meet the next generation of supply chain thinking. Karkhana and Micron combined bring a level of depth and capability that sets a new benchmark for electronics manufacturing in India. Our union puts us in a strong position to serve OEMs at scale, across industries. India’s EMS (Electronics Manufacturing Services) sector is growing at a compound annual growth rate (CAGR) of 34–35 per cent and demand for reliable, non-China supply chains has never been stronger. Together we will move fast to capture this opportunity.”

After the acquisition, Karkhana’s workforce will grow to over 150 employees, bringing together expertise in manufacturing, engineering, quality control and operations. The company aims to achieve annual recurring revenue of INR 200 crore by FY27.

Founded in 2018, Karkhana provides electronics manufacturing services and box-build assemblies for hardware companies, especially small and mid-sized firms that often face challenges working with large, high-volume manufacturers.

The company is backed by investors including Arkam Ventures, Susquehanna Asia Venture Capital, and Vertex Ventures Southeast Asia. In the long term, Karkhana plans to become an original design manufacturer (ODM), adding design and product development capabilities to its manufacturing operations.

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